Within the next year the impact of our policy decisions in the national communications area should be more pronounced.

The second point raised by the committee is that of the organization of the office and the location of the office within Government. The exact status of the plan to better identify the Office of Telecommunications Management as a separate office is at the moment unclear; however, I believe that it is still under consideration within the executive branch. I have recently discussed this matter with the Director, Office of Emergency Planning, who indicated that he fully supports the need to carry out the functions of the office in a highly effective manner. It is his opinion, however, that any material improvement in the organizational structure of the office would require the creation of a Cabinet post for the functional area of telecommunications. He feels that the effectiveness of the office due to its organizational position would not improve materially short of such a major change, and I believe that there is substantial merit and correctness in this view. We have, I should say, become separate in a variety of ways from OEP with our own budget, which is separate, and with our own capability for action without OEP review. So many of the difficult circumstances which prevailed at the time that I arrived do not at present prevail. The situation is quite different.

Furthermore, the effectiveness of any office in the Government is measured more by its actions, by its decisions, and its ability to achieve progress than it is by any organizational status.

In connection with the overall question of the proper organization of the office, some study has been given to the total range of organizational alternatives available in the field of telecommunications management. As an ultimate organizational structure we have considered the possibility of a separate Department of Telecommunications as mentioned by the Director, OEP. However, we have not given this adequate study. A possible intermediate step in organizational development could be an agency or a combination of communications activities with those of transportation in a Department of Transportation and Communications, if a Transportation Department is created.

Mr. ROBACK. You might want to suggest an amendment on the floor today, Mr. Chairman. [Laughter.]

Mr. HOLIFIELD. I can foresee more trouble.

Mr. O'CONNELL. I would strongly suggest no amendment, Mr. Chairman, at this stage of our planning. We have not thought it through at all.

Mr. HOLIFIELD. I am afraid you are not ready for that.

Mr. O'CONNELL. That is correct.

Mr. HOLIFIELD. And it would not be germane to the pending bil

anyway.

Mr. O'CONNELL. That is correct.

Mr. HOLIFIELD. I would object to it on the ground of nonger maneness. [Laughter.]

Mr. O'CONNELL. I merely bring it up to indicate that we are study ing all these possibilities as to where the office ultimately really ought

to go.

No firm conclusions have been reached to date concerning such a organization.

With respect to the final committee recommendation concerning the need for planning and identification of requirements, I will point out during this statement many significant areas in which my office is taking steps to conduct more systematic planning and requirements analysis. Specifically:

Steps are now being taken in cooperation with the Bureau of the Budget to obtain a complete resource inventory of manpower, facilities, radio frequencies, and funds involved in the overall complex of NCS activities. Using this basic data it will be possible for us to make "hard" analyses as to the effectiveness of our systems and the need for alternate plans where appropriate.

In the field of the space services, including communications requirements, my office is taking the lead in identifying new systems requirements and new communications needs extending through 1980, and we have a study in this respect. The results of our studies in this area will be fed through the National Communications System planning mechanism following screening and policy judgments by my office.

My office is leading the way from the viewpoint of conceptual planning in the field of Federal-State communications coordination. We have recently completed initial discussions with representatives of the State governments concerning areas in which increased telecommunications planning at the Federal-State level is indicated. We will shortly refer this initial study to the executive agent, NCS, for further refinement and coordination. Additional important areas under Federal-State cooperative planning are discussed later in this statement.

STAFFING THE OFFICE

The fundamental need in any policy and management organization, whether it be in Government or industry, is for a small nucleus of dedicated, professional, and highly experienced people who have proven their ability to make executive decisions and develop policy. The functions and policy activities that have been assigned to me result in very unique organizational patterns and staffing needs. What we need are relatively few top-level people-that is, in the grade 16, 17, and 18 supergrades; what we need is maturity, wide experience, and stature throughout industry and government. They have to act in what is entirely a policy domain, and to depend upon studies and analyses carried out by outside Government agencies and through contract support to gain a basis for the development of policy alternatives. We need senior people with a broad range of policy experience. Only a few support people are needed, except in the spectrum management area, but it is essential that these unique personnel and staffing needs be fully recognized, and that the impact of policy decisions within the communications field be realized.

This is mentioned to indicate that it is not the usual agency in which you have a very few top level people and a very large number of professionals, clerical, and administrative personnel serving as the base of the structure. Here we need a rather larger percentage of the policy brains and less of the lower grades and clerical administrative personnel.

We have received important help from the Departments and agecies who have furnished us with experienced people in this field, particularly the Department of Defense and the General Services Ad ministration, who have loaned us some very able people. Withou these people we would not have been able to make the progress that we have made. The detail of such policy-oriented personnel is provided for in the President's memorandum of August 21, 1963.

Earlier in my presentation I discussed deficiencies in my office a the time I was appointed, and I should now like to state some of the progress.

As I mentioned, we have obtained personnel on loan, we have increased our permanently assigned staff, although not by any means to a completely satisfactory degree. I have obtained authorized pos tions for three key supergrades in the office. I will be able soon to tell you that I have on my staff probably the most experienced mar in the country on Government telecommunications systems.

Tables I and II indicate the status of my personnel situation: still a very meager staff.

(Tables 1 and 2, above referred to, follow :)

TABLE DTM-1.-Telecommunications management, personnel staffing

TABLE DTM-2.—Telecommunications management, breakdown of fiscal year 1967 authorized personnel by functional area

Mr. O'CONNELL. Next is reference to the organization chart of the office, which is fairly self-explanatory. I will omit any comment on it until and unless you have questions.

Mr. HOLIFIELD. These will all be in the record.

Mr. O'CONNELL. I would like to refer now to this organization chart of my office and to discuss with you some of the specific actions that are underway to strengthen my staff (chart 2). The position of Associate Director of Telecommunications Management (Advanced Concepts and Technology) is currently filled; however, the

incumbent is leaving the office soon, after more than 2 years of outstanding and dedicated service. I am now faced with the extremely difficult task of seeking a replacement.

I have a difficult situation in the domestic communications area. For almost my entire tenure as Director I have been seeking both with Government and industry a person of the capabilities and stature necessary to fill the position of Associate Director (National Communications). This position is demanding. It requires an individual with great maturity and a wide range of industry and Government experience; demonstrated management and administrative capability; a highly developed sense of public service; and last, but certainly not least, a sense of humor to temper the frustrations and many trying problems that he will face each day.

I hope that I have now been successful in convincing an individual widely known within industry and Government to accept the position of Associate Director (National Communications). With his help I feel confident that we can look forward to a rapidly growing capability to deal with the complex tasks of policy coordination within the National Communications System area.

(The organization chart referred to above follows:)

CHART DTM-2.-Organization of Office of the Director of Telecommunications Management, Executive Office of the President.

Mr. O'CONNELL. I am looking forward with confidence to filling all three of these positions. As a matter of fact, one of them is already filled-with a highly qualified individual.

In the frequency management area. I am fortunate in having a key individual who is well qualified for the position and who has great experience in frequency assignment matters and responsibilities of the

office. I have also obtained a senior staff frequency management consultant with over 40 years of industry experience in this field.

Since taking over I have managed to gather under one roof all of my staff, except for a very limited number who remain at Frostburg, Md. In 1964, these people were scattered in five different locations in the Washington area.

To better state the responsibilities assigned to me, I have recently submitted a proposed revised Executive Order 10995. When, and if, approved, this revision will more clearly reflect the actual duties being accomplished by my office. It will also directly assign certain responsibilities which have heretofore been redelegated to me by the Director, Office of Emergency Planning.

THE ROLE OF CONTRACT SUPPORT IN ACHIEVING OFFICE GOALS

It is clearly impractical to build permanent staff within the office of the competence and numbers and different skills, that would be necessary to accomplish all required policy studies in-house. Accordingly, it has been my philosophy to employ contract studies and research effort to the degree possible in providing the analysis and data base necessary to identify policy alternatives and the relative merit of such alternatives.

This contract study capability is extremely important and perhaps essential to develop the facts, alternatives, and proposals that will clarify the national interests. At the same time, it must be recognized that there is a requirement for in-house staff guidance and analysis of the results of such studies. We have sometimes been limited in placing outside studies by lack of in-house capability to guide them. This contract direction and analysis capability cannot be obtained through other than permanent staff who have the benefit of the total context of national policy interests and continuity of Government activities.

CONTRACTUAL STUDIES COMPLETED TO DATE

In the past 2 years important accomplishments and policy recommendations have been based upon contract study effort. I would like to mention a few of these contract-supported studies:

The report of the Intragovernmental Committee on International Telecommunications, which I have distributed to each committee member, was supported by a major contract study effort carried out by the Stanford Research Institute. Copies of the SRI reports have previously been made available to the committee. I should not fail at this time to make special mention of the important assistance and support provided by the Department of Defense who provided the major financial support for this contractual effort. It was beyond the capabilities of my office or the FCC to support it. We could not have supported this major study without the assistance provided by the Department of Defense.

Another major contractual study effort, which has been completed, was the initial system analysis and design work carried out by the H.R.B. Singer Co. in support of our efforts to convert the radio frequency management task to automatic data processing techniques. This major contractual study was entirely funded by my office. The benefits of the study are now coming to be available to every depart